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Project Description

Summary:  View help for Summary This is code accompanying the article "Stereotypes About Successful Entrepreneurs". The article asks what comes to mind when thinking about a successful entrepreneur. Belief formation models suggest that what comes to mind is an oversimplified picture of the characteristics of successful entrepreneurs, i.e, stereotypes about successful entrepreneurs. Using French administrative data on 48,767 new firms, we show that some characteristics are stereotypical of success and have distributions that can generate miscalibrated beliefs. To illustrate how stereotypical thinking can lead to biased assessments, we report the discrepancies between the implied fraction of successful entrepreneurs under Bayesian vs. stereotypical thinking for several stereotypes. We discuss the consequences of stereotyping for venture capital allocation.

Scope of Project

Subject Terms:  View help for Subject Terms [entrepreneurship; startups; deal selection; , stereotypes; venture capital; ]
JEL Classification:  View help for JEL Classification
      G24 Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
      G41 Behavioral Finance: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
      J16 Economics of Gender; Non-labor Discrimination
      L26 Entrepreneurship
      M13 New Firms; Startups
Data Type(s):  View help for Data Type(s) program source code


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